5.2. Cost-Benefit Analysis 

Cost-Benefit Analysis (CBA) is a systematic process used to evaluate the economic advantages and disadvantages of a project or decision – or in the case of the WEFeF 2.0, an intervention – by comparing its costs and benefits (Pearce, Atkinson, and Mourato 2006). In this method, all relevant costs and benefits associated with an activity are identified, quantified, and converted to monetary values. The goal in the context of the WEFeF 2.0 is to determine whether the benefits of implementing an intervention outweigh the costs, and by how much, helping decision-makers understand the overall economic value of the intervention. CBA has been used frequently for the analysis of interventions on water quality and supply. 

Why doing a cost-benefit analysis?  

• To determine the total costs associated with the implementation of the intervention. 

• To evaluate the economic benefits arising from the intervention. 

• To determine whether the benefits outweigh the costs, and by how much.